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When you are in personal bankruptcy, your bankruptcy estate is in control of a bankruptcy trustee. The trustee makes decisions regarding what is best for your creditors while you are in bankruptcy, so a payday loan may not be possible.

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Affordable bankruptcy attorney Keith F. Carr explains advantages of filing bankruptcy on payday loans. Located in Bankruptcy Can Help With Payday Loans Unfortunately, when the payday loan becomes due (on the debtor's next payday), the debtor cannot afford to pay the balance which, by now, has interest attached.